Asset management includes advice and the execution of investment transactions on behalf of the customer. As a rule, asset managers also offer their clients other financial services, such as B. Management of the customer's securities portfolio, financial and tax planning. From the client's perspective, wealth management is a process of improving the client's financial situation while at the same time achieving the client's short and long-term financial goals. Private wealth management is typically developed to serve private individuals, who are typically high net worth individuals.
Essence of Wealth Management Services High net worth individuals often lack the knowledge and time to successfully manage their finances, so they seek the advice of wealth managers who are trained in managing individuals' funds and have experience in solving various financial problems as well as improving overall financial status of the customer.
Typically, a wealth management advisor will meet with a private individual, have a comprehensive discussion of the client's financial goals, risk capacity and appetite, and any other restrictions and constraints the client may have in relation to the investment of their wealth. Later, the Wealth Manager puts together an investment strategy that will allow the client to achieve their goals while being the most suitable for the client, taking into account all the information discussed during the meeting. The asset management advisor then continues to manage the private individual's funds using various investment products.
While wealth managers typically cannot offer their clients the same concierge-like and specialized services that private bankers can offer, they spend significant time understanding the client's needs and designing the most appropriate investment strategy for the client. For example, wealth managers cannot open a bank account for the client, but they can help them determine which bank account is best suited to the client's needs.
Wealth manager services include:
allocation of funds to suitable investment ideas; retirement planning; Coordination with auditors and lawyers; trust planning; Insurance and risk requirements. Wealth management is typically a department of banking institutions or non-bank financial institutions that specialize in providing services to wealthy clients.
Benefits of Wealth Management Services Even if you are extremely knowledgeable in your own field, you may not be an expert on investing and financial markets. This is perfectly acceptable, and you don't need to invest your time and energy in acquiring sufficient knowledge of the financial markets to feel comfortable investing. Very often there are simple tricks to know and mistakes to avoid that are known only to professionals familiar with the financial markets.
Professional asset managers guide you through the confusing processes and advise you on good and bad investment ideas and partners.
Another benefit of professional money managers is their multidisciplinary skills put to work in your favour. Wealth managers' skills are not limited to allocating wealth well; Professional wealth managers can also help you with tax optimisation, legal requirements, retirement and savings goals and the passing on of your wealth to the next generations.
The third benefit of acquiring wealth management services is using the manager as a filter for your investments. If you are a wealthy individual, you will most likely receive numerous requests and prayers to invest in various business ideas and projects. In these cases, you can escalate all these requests to your wealth manager and not bother with them. When a really good investment idea comes along, your money manager will spot it and bring it to you.